Komfie Manalo, Opalesque Asia: Institutional investors are looking at hedge funds for higher returns and to diversify their portfolio, as yields in bonds falter because of low interest rates, said Bruce Amlicke, chief investment officer of UBS Hedge Fund Solutions.
Amlicke, who heads the UBS $34.4 billion hedge fund platform, that invests in 230 funds globally, told Bloomberg in Singapore that institutional investors’ hedge allocations are generally in the high single digits but can reach as much as 20% of their portfolios. It was "a couple of percent less" five years ago.
Amlicke told Bloomberg, "Monetary policy responses to drive interest rates lower pushed fixed-income markets and yields to a level where you can look at hedge funds as an alternative to fixed income. It’s a global phenomenon."
Eamon McCooey, head of prime services at Wells Fargo Securities, echoed this view. He said that hedge funds are drawing more business from institutional investors that are seeking some yield in a low-rate environment.
"We’re more in pensions and endowments coming into hedge funds, looking for enhanced yield," he told Forbes. "The gestation period for them to make an investment is often much ...................... To view our full article Click here
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